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Yooma Wellness grabs Big Swig to expand US footprint and 'cross-pollinate' with CBD brands

Published: 03:10 20 Sep 2021 EDT

Yooma Wellness Inc -

Yooma Wellness Inc (CSE:YOOM, OTC:LVVEF, AQSE:YOOM, FRA:7AI) has struck a deal to acquire Big Swig, a US-based maker of sparkling water beverages.

Valued at US$2.5mln, Yooma will pay US$1.375mln (CA$1.75mln) in shares after adjustments for liabilities including US$375,000 owing to Yooma advanced in anticipation of the transaction.

Yooma said the acquisition will increase its presence in retailers throughout the southern United States and add the Big Swig sparkling water and Hard Swig 'hard seltzer' brands to its portfolio, while also presenting opportunities to create new product offerings in the CBD and wellness space, and vertical integration with Yooma's existing wellness platform.

“This exciting acquisition is the second step in the strategic plan we presented to our investors at the time of our dual listing in London last month,” said Yooma chief executive officer Jordan Greenberg.

“Big Swig will expand our footprint in the United States and add a whole new line of product offerings to our platform, with the potential for real cross-pollination with our CBD and wellness brands and capabilities.”

Big Swig will become a wholly owned subsidiary of Yooma, with the consideration shares subject to a 24-month lock-up period, with a quarter of them released from lock-up every six months, while 10% of the shares will be subject to a 24-month escrow indemnity holdback to allow them to be accessed to satisfy indemnity obligations.

Yooma also announced that the option it had granted to a strategic investor to subscribe for up to 9,555,555 common shares and 4,777,777 warrants for common shares of Yooma in connection with its UK financing and dual-listing on the Aquis Stock Exchange Growth Market has expired without being exercised.

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